In the Boston, MA market in July, new home closings fell year-over-year, but the market seemed to be signaling improvement with a percentage drop less steep than in June 2015. New home closings saw a 44.6% fall from a year earlier to 31. This followed a 49.2% fall year-over-year in June.
A total of 377 new homes were sold during the 12 months that ended in July, down from 402 for the year that ended in June.
Of the total number of closings, new home closings made up 0.4%. A year ago, 0.8% of total closings were new home closings. Closings of new and existing homes jumped year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
In July, the average price for new home closings was $416,452, a 22.7% decline from last year. This decline is a drop off from the 23.2% fall in June from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In July 2015, the average mortgage size on newly sold homes saw a 10.2% fall from a year earlier. In June 2015, average mortgage size declined 18.6% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units grew from 46.4% of closings in July 2014 to 54.8% of closings in July 2015. At the same time, the share belonging to single-family homes declined to 45.2% of closings from 53.6% of closings.
The average unit size of newly sold homes fell 21.9% year-over-year to 1,937 square feet in July 2015. The fall in size was less sharp than the drop in average price of newly sold homes, making the movement similar to June 2015 when the average size saw a 7.3% dropped to 2,111 square feet from a year earlier. A decline was also seen in June 2015 when the average size of new homes sold slid 7.3% to 2,111 square feet. In June, the average size of new homes sold went from 2,278 square feet a year earlier to 2,111 square feet.
Foreclosures and real estate owned (REO) closings increased in July from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 10.3% of existing home closings, up from 5.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 4.5% in July from 2.9% a year earlier while REO closings as a percentage of existing home closings jumped to 5.8% from 3.0%.